If I invested P300,000 last March 20, 2020 in a financial instrument that pays 8% per annum rate and was redeemed last January 9, 2021, how much will be the proceeds of the redemption using the following: Exact interest at approximate time Exact interest at actual time Ordinary interest at approximate time Ordinary interest at actual time
Q: n 2018, Beta Corporation earned gross profits of $770,000. a. Suppose that Beta was financed by…
A: The debt is considered a loan to the company. Therefore, the interest paid on the debt is…
Q: | Using this table as needed, calculate the required information for the mortgage. (Round dollars to…
A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that…
Q: What would you expect the nominal rate of interest to be if the real rate is 2.75% and the expected…
A: We have the real rate of interest and the inflation. We need to determine the nominal rate of…
Q: Upon the birth of their first child, a couple deposited $5000 in an account that pays 8% interest…
A: Information Provided: Interest rate = 8% compounded continuously Amount deposited = $5000 Period of…
Q: Maple Aircraft has issued a 4¾% convertible subordinated debenture due 3 years from now. The…
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
Q: b) Suppose you have purchased some GameStop shares on margin at $5 per share. You ask your broker to…
A: i) Given, Limit sell order = $7 Stop loss order = $4.50 if the share price falls to $4.50, as per…
Q: 5. Ten years ago, Amanda Cortez invested $20,000 in an account paying an annual interest rate of…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The right side of the balance sheet shows the firm's liabilities and stockholders' equity. Which of…
A: Given, The Net income is $132 million Retained earnings beginning is $561 million Retained earnings…
Q: (Related to Checkpoint 9.2) (Yield to maturity) The market price is $1,125 for a 17-year bond…
A: Information Provided: Market price = $1125 Bond maturity = 17 years Par value = $1000 Annual Coupon…
Q: Please explain adverse selection problem using an example from banking
A: The meaning of adverse selection: Adverse selection refers to the situation wherein one party has…
Q: Hudson Corporation will pay a dividend of $4.70 per share next year. The company pledges to increase…
A: Current value = Next dividend / (Required rate of return - constant growth rate) Where Next dividend…
Q: General Electric has just issued a callable (at par) 10-year, 5.7% coupon bond with annual coupon…
A: Annual Coupon rate is 5.7% Time period is 10 years Curret Price of Bond is $102.43 Callable at par…
Q: The Bensington Glass Company entered into a loan agreement with the firm's bank to finance the…
A: Floating Rate is LIBOR+0.27% Maximum Annual Rate is 2.19% Minimum Annual Rate is 1.72%
Q: The financial staff of Cairn Communications has identified the following information for the first…
A: Projected sales are $22million Operating cost is $7million Depriciation is $4million Interest…
Q: 1. Basic concepts Finance, or financial management, requires the knowledge and precise use of the…
A: The core principle of finance is the time value of money. Time value of money means sum of money in…
Q: (Expected rate of return and risk) Carter Inc. is evaluating a security. Given the information in…
A: PROBABILITY RETURN 0.1 6% 0.4 8% 0.4 10% 0.1 15%
Q: K (Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 12…
A: Face value of the bond = $1000 Current price of the bond = $1125 Annual coupon amount = $1000 * 0.12…
Q: An investment you are considering is expected to make payments annually forever. The amount of the…
A: Given, The payment is $4.75 Growth rate is 2.9% Amount of investment is $80.
Q: You deposit $450 each month into an account earning 8% interest compounded monthly. a) How much…
A: Future Value Investing is based on expectations of future returns, so decisions making is important.…
Q: The following information relates to ABC Ltd for the year ended 31 May 2015: Sales Variable costs…
A: Sales R4,50,000.00 Variable Costs R2,70,000.00 Fixed Costs…
Q: Assume that a company is considering purchasing a machine for $100,000 that will have a seven-year…
A: Year Cash inflow PV factor PV of Cash Inflow 1 21,000 0.8547 17,948.72 2…
Q: Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using…
A: Data given: Amount Financed = $100,000 nper=72 pmt=$2025.50 fv=0
Q: On the back of a check "payable to Huan," Huan signs her name and negotiates the item to Ito. To…
A: In finance, "without recourse" limits the liability of the endorser who negotiates the check to…
Q: hich of the following statements is correct? Group of answer choices All of these statements are…
A: In capital budgeting we analyze and evaluate several different projects and then invest in those…
Q: Consider the following security: Applegate Aeronautical, Incorporated…
A: First, we will compute the capitalization rate by multiplying the retention rate and actual return.…
Q: A high level of financial leverage exposes firms to default risk. However, as a result of it,…
A: Financial leverage is related to the capital structure of company and it is very important for the…
Q: You invested $5,000 in an account 16 years ago. This account paid 8% compounded monthly for the…
A: Given, Amount invested is $5,000 Term is 16 years
Q: Stock i’s standard deviation35.00%Market’s standard deviation32.00%Correlation between Stock i and…
A: In finance beta is a measure of a stock’s volatility. More precisely it is a measure of a stock’s…
Q: Perpetuities are also called annuities with an extended or unlimited life. Based on your…
A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…
Q: Your small toy manufacturing facility has the following information: Revenue per toy $1.19 Fixed…
A: Break even point is the point at which the total revenue is equal to the total cost i.e. no profit…
Q: You are finalizing a bank loan for $180,000 for your small business and the closing fees payable to…
A: Loan A fund that is borrowed from a financial institution or from an individual is known as a loan.…
Q: A man has a simple discount note for $6,100, at an ordinary bank discount rate of 8.53%, for 60…
A: Discount rate is 8.53% Time period 60 days Face value of note is $6,100 To Find: Effective interest…
Q: Identify whether the following statements about the simple and compound interest methods are true or…
A: 1) TRUE Compound Interest = Present Value * (1 + Interest rate)n Simple Interest = PV + (PV *…
Q: What are agency problems, and why do they exist within a corporation? Discuss how agency conflicts…
A: Shareholders: Shareholders are the owners of a corporation, where they purchase the ownership in the…
Q: The real risk-free rate is 2%, and inflation is expected to be 2% for the next 2 years. A 2-year…
A: Given, The real risk-free rate is 2%. Inflation is 2% Treasury security yield is 5.0%
Q: While comparing two bonds with the same face value, the price is all you need to determine which one…
A: Investment Bonds: Investment bonds are financial securities in which the authorized issuer owes a…
Q: Torrid Romance Publishers has total receivables of $2,300.00, which represents 24.00 days’ sales.…
A: Total receivable = $2300.00 Average receivable period = 24 days Turnover = 2300/(365/24) =…
Q: d the present value of a 4-year $60 annuity when the stated rate is 6%, compounded monthly. Make…
A: Present value of annuity is equivalent value of today considering the the time and interest of the…
Q: ould I expect a lump sum from a deal at the end of 3 years if I start investing today at amount of…
A: Future value of ordinary annuity is future lump sump amount to be received at the end of period…
Q: Draw the payoff diagram for Valero, the long side of the contract. Then draw the payoff diagram for…
A: A forward contract is a derivative that locks in the price of a future transaction. In this case, at…
Q: Another bank is also offering favorable terms, so Rahul decides to take a loan of $12,000 from this…
A: First let determine the formula to compute the amount when compounded daily. This is calculated with…
Q: a) Find the exponential function that describes the amount in the account after time t, in years. b)…
A: Information Provided: Principal = $18,982 Interest rate = 5.6% compounded continuously
Q: Brian is an amateur investor who holds a small portfolio consisting of only four stocks. The stock…
A: We have to find the expected return on a portfolio that comprises of 4 stocks. 40 new stocks are…
Q: Currently, your credit card has a balance of $14,000. The credit card has an effective monthly…
A: The number of monthly payments may be calculated through following formula Present value =…
Q: 3.37 Find the present worth in year 0 for the cash flows shown. Let i= 10% per year. i = 10% 4 2 200…
A: Present value To make an investment, it is important to understand the current value of the…
Q: 5. You deposit 10000 to an account that earn 7% compounded annually for five years and force of…
A: Given: Deposit = 10,000 Interest rate = 7% Year =10
Q: (Related to Checkpoint 9.3) (Bond valuation) Calculate the value of a bond that matures in 12 years…
A: Par Value = $1,000 Time Period = 12 Years Coupon Rate = 14% Yield = 15%
Q: What are the monthly and quarterly rates equivalent to the 750% p.a. rate?
A: Given, Effective annual interest rate (EAR) = 750% per annum i) a) Simple Interest per month =…
Q: 5. An investment you are considering is expected to make payments annually forever. The amount of…
A: Data given: A= Payment = $4.75 (payment to be made annually forever) g=growth = 2.9% P0= Current…
Q: Your company needs to take another capital budgeting consideration regarding expansion of seafood…
A: Given, Initial cost of $1,250,000 Annual sale of 3,500,000 units
- If I invested P300,000 last March 20, 2020 in a financial instrument that pays 8% per annum rate and was redeemed last January 9, 2021, how much will be the proceeds of the redemption using the following:
- Exact interest at approximate time
- Exact interest at actual time
- Ordinary interest at approximate time
- Ordinary interest at actual time
Step by step
Solved in 2 steps
what do you mean by proceeds in this question? is it only the interest calculated or the matured value also?
- Assume that a deposit made on January 1, 2020, earns 6% interest. The deposit plus interest accumulated to $50,000 on January 1, 2026. How much was invested on January 1, 2020, if interest was compounded annually? N (period of time) I (Interest) PV (Present Value FV (Future Value) PMT (Annuity) Assume that a deposit made on January 1, 2020, earns 6% interest. The deposit plus interest accumulated to $50,000 on January 1, 2026. How much was invested on January 1, 2020, if interest was compounded semi-annually? N (period of time) | (Interest) PV (Present Value FV (Future Value) PMT (Annuity) Page 1 Assume that a deposit made on January 1, 2020, earns 6% interest. The deposit plus interest accumulated to $50,000 on January 1, 2026. How much was invested on January 1, 2020, if interest was |compounded quarterly? N (period of time) | (Interest) PV (Present Value FV (Future Value) PMT (Annuity) 2 In each of the three scenarios the PV should continue to decrease. Explain why this passes the…Compute the amount of interest on $8350 at 6.5% p.a. from October 8, 2019, to August 4, 2020. What rate of interest is paid if the interest on a loan of $12500 is $196.06 from November 14, 2019, to May 20, 2020? Loan payments of $1725 due today, $510 due in 75 days, and $655 due in 323 days are to be combined into a single payment to be made 115 days from now. What is that single payment if money is worth 8.5% p.a. and the focal date is 115 days from now? What principal will earn $355.99 interest at 9.75% p.a. from February 4, 2017, to July 6, 2017? Determine the face value of a four-month promissory note dated May 20, 2018, with interest at 7.5% p.a. if the maturity value of the note is $1190.03. A Company sells locks for $10 each. Manufacturing cost is $2.60 per lock; marketing costs are $2.40 per lock; and royalty payments are 20% of the selling price. The fixed cost of preparing the lock is $18 000. Capacity is 15,000 locks. Compute the contribution…Which of the following is the most advantageous for a debtor if he borrowed P15, 000 at 6% from March 15, 2020 to December 20, 2020.? A Ordinary Interest at Actual Time (B) Exact Interest at Actual Time Ordinary Interest at Approximate Time D Exact Interest at Approximate Time
- Which of the following is the most advantageous for a debtor if he borrowed P15, 000 at 6% from March 15, 2020 to December 20, 2020.? А Exact Interest at Approximate Time В Exact Interest at Actual Time Ordinary Interest at Approximate Time Ordinary Interest at Actual TimeWhat is the exact simple interest earned on P 35, 000 for the period from April 3, 2020 to October 14, 2020, if the interest rate is 18%?Determine the exact and ordinary simple interest on 100,000.00 borrowed at 12% interest rate from July 2020 to April 2024. Answers: Io = 47,000.00 ; Ie = ₱ 45,994.52
- 1. Determine the exact and ordinary simple interest on P100,000.00 borrowed at 12% interest rate from July 2020 to April 2024.An investor invests the following amounts of money in banks account R18850 on 1 September 2019,R15575on 31 May 2021 and R19465 ON 1 FEBRUARY 2023.From 1 October 2021 up to 30 April 2023 an amount of R980 invested at the start of every month. From 1 July 2020 up to 31 March 2022 an amount of RX is invested at the end of each quarter. On 1 January 2019 the total present value of all the investments is R75998,34.If the interest rate is 8,75% per year, Calculate the value of X?What is the interest income for 2021? Philippine Bank granted a loan to a borrower on January 1, 2021. The interest on the loan is 8% payable annually starting December 31, 2023. Principal amount Origination fee charged against the borrower Direct origination cost incurred 3,000,000 100,000 260,300 After considering the origination fee charged to the borrower and the direct origination cost incurred, the effective rate on the loan is 6%. a. 240,000 O b. 189,618 c. 252,824 O d. 180,000
- simple interestSolve the following problems:1. Sassy borrowed P 10,500 on Nov. 6, 2020 to be repaid on April 11, 2021 at 15.3% interest in a year. How much will the interest be? Find the amount to be paid on the maturity date.2. Find the exact interest and the final amount due on P 12,350 at 11 % for 150 days, using ordinary interest.3. The interest on a loan of P 2,500 is P 165.00 . If the rate of interest is 6 %, when is the loan due?On February 29, 2020 a sum of $35,200 was deposited into an account. What would be the future value of this sum of money on June 8,2023, if the interest rate is 3.6% compounded semiannually. Round the value for FV to two decimal places. P/Y = CY = DBD = days IY = PV = $ PMT = $ FV = $simple interest1. Sassy borrowed P 10,500 on Nov. 6, 2020 to be repaid on April 11, 2021 at 15.3% interest in a year. How much will the interest be? Find the amount to be paid on the maturity date